14.03.2009

Haulotte profits down 64%

Haulotte has released more details on its 2008 results, the brief statement confirms revenues of €450.8 million - down 30 percent on 2007, although stripping out rental revenues from Lev – sold in January 2008 – the revenue reduction was 26 percent although this includes Bil Jax revenues for the fourth quarter so is not a like for like comparison.

Pre tax profits slipped 64 percent to €39 million or 8.7 percent of revenues. Haulotte says its results were adversely affected in the second half by the impact of contracting volumes on the gross margin and pressure on cost prices. The profits are likely to include any gain made on the sale of Lev in January 2008.

Equipment sales felt the effects of the severe economic slowdown and tightening credit caused by the financial crisis. Current operating income and net income were impacted by non-recurring items and, in particular, a capital gain of approximately €30 million from the sale of LEV.

As of 31 December, Haulotte had drawn down €180 million of its €360 million syndicated loan and met all of its loan covenants for 2008 year-end. However the company has initiated discussions with the banking syndicate in order to anticipate the consequences on compliance with contractual obligations of
potentially weaker sales in 2009.

The company is providing any forecasts for 2009 due to the uncertain economic environment, and is focusing on reducing working capital containing fixed costs.
It says:” The flexibility of our economic model should enable us to effectively navigate the current market turmoil.”

In spite of the uncertainty the company is recommending a 22 cent dividend to the Annual General Meeting. With the Saubot family owning a controlling interest in the business, it is unlikely to be rejected.

More details will be available once the annual report is published in April